July 15, 2024
Granola Market Size

The Granola Market is Estimated To Witness High Growth Owing To Increasing Health Awareness Trend

The Granola Market is estimated to be valued at US$ 3,753.3 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Granola is a breakfast food made from oats, nuts, honey or other sweeteners and vegetable oil. It is high in fiber and provides a good source of protein as well as vitamins and minerals. Granola comes in different flavors and tastes delicious when consumed with milk or yogurt. The convenience of granola bars makes it popular portable breakfast option. The nutritious content of granola make it suitable for people looking to maintain a healthy diet.

Market key trends:
The granola market is driven by increasing health awareness among people. There is a rising trend of consuming healthy breakfast foods to get energy to start the day. Granola fits well into this need due to its nutritional composition. Consumers are also becoming aware of the digestive benefits of high-fiber foods like granola. The on-the-go lifestyles have further increased demand for portable snacks like granola bars. Manufacturers are launching new flavors and varieties of granola to attract diverse consumer tastes. They are also promoting granola as a gluten-free and vegan snack.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Global Granola Market is moderate as large capital investment and brand loyalty is required for production and distribution in this market. However, new start-ups can partner with retailers and provide niche products.
Bargaining power of buyers: The bargaining power of buyers is high in the granola market as it is a fragmented market with many regional and private label manufacturers. Buyers can easily switch to substitutes and private labels.
Bargaining power of suppliers: The bargaining power of suppliers is moderate since raw materials like oats, nuts, dried fruits are globally available from a large base of suppliers. However, suppliers of premium and unique ingredients may have some bargaining power.
Threat of new substitutes: The threat of new substitutes is high as other muesli, cereal, snack bars are introduced in the market frequently.
Competitive rivalry: Intense due to many global and regional players.

SWOT Analysis
Strength: Wide range of product variants and flavors in granola catering to taste and nutritional requirements of diverse consumer segments. Innovation in pack sizes, protein-fortified and organic variants.
Weakness: High production and marketing costs compared to private labels and substitutes. Vulnerability to price fluctuations of raw materials.
Opportunity: Increasing health consciousness and demand for on-the-go snacks driving market growth. Expanding distribution through modern retail formats.
Threats: Aggressive discounting strategies of private labels. Regulatory challenges regarding labelling and ingredients.

Key Takeaways

The global granola market is expected to witness high growth, exhibiting CAGR of 4.5% over the forecast period, due to increasing health consciousness among consumers and prevalence of busy lifestyles. North America dominates the global granola market currently due to high awareness about nutritious snacking alternatives.

Regional analysis: The North American granola market accounts for over 35% of the global market share currently due to popularity of granola among health-conscious consumers for breakfast and snacking. Europe also captures a significant share supported by trend of on-the-go consumption. Asia Pacific is expected to witness the fastest growth over the forecast period with increasing adoption of Western food habits and rising disposable incomes in the region.

Key players operating in the granola market are Kellogg Corners, Kraft Foods Inc., Sunnycrunch, ConAgra foods, Clif Bar & Coand, General Mills, Nestle, Nature Valley, Slim-Fast Food Co. Kellogg and General Mills dominate the global market while regional players cater to local tastes in different geographies. Innovation in product portfolio and aggressive marketing are some of the key strategies adopted by major players to strengthen market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it